Markets went up and ended higher for the second consecutive day, however volumes were low. Both sessions saw similar kind of pullback rallies on the hopes that US Congress will clear the bailout package. Today's rally was mostly on the back of short covering and lack of selling pressure.

Banking and technology stocks were leaders for this session. Buying was also seen in telecom, FMCG, power, pharma and few metal stocks. However, selling was seen in realty and few oil stocks.

The Sensex turned back above 13000 mark and held the same level throughout the day. It closed at 13,055.67, with a gain of 195.24 points or 1.52%, after hitting an intraday high of 13,203.86 and low of 12,697.30.

The Nifty had touched 4000 mark during the day, but was unable to hold the same. It was up 29.55 points or 0.75%, to close at 3950.75. It has touched an intraday high of 4000.50 and low of 3861.25.

Fresh long build up was seen in the Nifty Futures after Tuesday's short covering. It ended at a premium of 22 points. Real Estate stocks saw fresh short build up after a short bounce back. IT and banking stocks witnessed fresh long build up after short covering in Tuesday’s trade.

Laurence Balanco, Asian Technical Research, CLSA, sees major resistance on the Sensex at 15000-15500 and on Nifty at 4500-4600 levels. Balanco said the long-term downtrend is still intact, despite short-term consolidation. The Nifty has a meaningful support at 3000 levels. The Sensex could fall to 8,900 if it were to break below 12,300 levels, he said.

Independent Market Analyst, Dhiraj Agarwal feels there is no upside seen in the market now. He said that the destruction phase is over. However, construction will take some time and in that period there will be trading rallies on oversold stocks that are bought. Therefore he expects the markets to trade in a range for some more months.

After failure of first USD 700 billion bailout plan, US Republican members are forging alternative bailout plan. The proposal will be an alternative to that proposed by US Treasury Secretary Henry Paulson. Experts believe that bailout plan may be passed by end of this week, due to which US markets had bounced back sharply on Tuesday.

Shane Oliver, Head of Investment Strategy of AMP Capital said that the US bailout package is likely to be cleared this time. He said that substantial changes in bailout package could be risky for markets and that the bailout package could trigger a 50-100 point rally on S&P 500. However, Dow Jones and Nasdaq Futures were down around 73 points and 10 points, respectively, at 4:47 pm.

Oliver said that markets look oversold and that some bounce is expected in the coming weeks. He feels that markets are likely to remain volatile in October and then there will be a rally in November-December. He added that the markets are pretty close to the bottom.

Among the frontliners, Satyam was the top gainer, rose 7.47%, Jaiprakash Associates, HDFC Bank, Grasim, Tata Power and HCL Technologies rose 4.5-7%.

However, losers on the BSE were DLF, Reliance Industries, Tata Motors and Reliance Infrastructure, which lost 2.03%, 2.01%, 1.44% and 1.11%, respectively. On the NSE, SAIL fell 3.33%, Reliance Petroleum -2.26% and Sun Pharma -2.05%.

Most beaten down stocks like banking and technology stocks have gained a lot in today's trade. BSE IT Index shot up by 122.82 points or 3.97%, to close at 3,217.90. BSE Bankex surged 209.43 points or 3.23%, to settle at 6,688.28.

Technology stocks like Satyam and Patni Computer rose 7.5%. HCL Tech gained 5.87%. Infosys, Financial Tech, Rolta, Wipro and Tech Mahindra gained 2.5-4%.

Banking stocks like HDFC Bank, Federal Bank, Bank of Baroda, IndusInd Bank, PNB and Oriental Bank rose 4-5%. ICICI Bank, Bank of India, Union Bank and SBI were up 2.5-3%.

Telecom stocks like Reliance Communication gained 2.83%, MTNL 1.19%, Bharti Airtel 0.63% and TataTeleservice 0.23%.

FMCG Index rose 1.4%, to close at 2,190.94. Godrej Consumer, ITC, United Spirits, Tata Tea and HUL were up 1-2.6%.

Power stocks also charged up, Index gained 24.43 points or 1.08% at 2,284.70. Tata Power, Power Grid Corp, CESC, Torrent Power, NTPC and GMR Infra were gainers.

Healthcare Index jumped 38.71 points or 1.05% to 3,710.89. Wockhardt, Dr Reddys Labs, Lupin, Sun Pharma Advanced and Bilcare rose 4-5.5%.

Metal stocks were also shining. Welspun Gujarat, Bhushan, Tata Steel, Jindal Steel, Jindal Saw, JindalStainless and Hind Zinc were gainers. Metal Index rose 59.59 points or 0.66%, to end at 9,051.65.

Auto Index ended with a gain of 12.75 points or 3,687.73 at 3,687.73. Exide Industries, Escorts, Ashok Leyland, Maruti Suzuki and Hero Honda have gained.

Capital Goods ended with marginal gain of 12 points at 10,592.91. Elecon Engg, Alstom Projects, BEML, Crompton Greaves, Punj Lloyd, Jyoti Structure and ABB were gainers.

However, Realty Index fell 81.56 points or 2.32% to 3,427.21. Mahindra Life, Indiabulls Real, Anant Raj Inds and Omaxe fell 3-6.5%. Phoenix Mills, Peninsula Land, DLF, HDIL and Sobha Developer were down 1.5-2.5%.

Oil & Gas Index lost 99.73 points or 1.10%, to settle at 8,939.55. Reliance Industries, Reliance Petroleum, Essar Oil, HPCL, IOC and Aban Offshore have lost ground.

BSE Midcap Index gained 25.87 points or 0.54% to 4,824.16 and Small Cap Index rose 29.33 points or 0.53% to 5,606.80.

Among the midcap stocks, Gammon Infra, Adhunik Metalik, Usha Martin, Jai Balaji Ind and Puravankara Projects gained 8-17%.

In the small cap segment, Kaveri Seed, Piramal Glass, Hercules Hoists, ITD Cementation and Khaitan Elect rose 13-20%.

Market breadth was positive; about 1625 shares have advanced while 1327 shares have declined. About 230 shares remained unchanged.
 
Turnover was very low today as compared to Tuesday; it stood at Rs 62868.47 crore. This includes Rs 10,786.37 crore from NSE Cash segment, Rs 47,733.85 crore from NSE F&O and balance Rs 4,348.25 crore from BSE cash segment.

On the global front, most Asian markets were shut today like China, Hong Kong, Singapore, Indonesian, Malaysia. Nikkei rose 0.96% and Taiwan 0.78%. However, Kospi fell 0.58%.

European markets were slightly mixed. FTSE was up 1.48% and CAC rose 0.24% while DAX fell 0.35%, at 4:47 pm.

Market Snapshot

Sensex ends in positive territory amid volatile trade

Beaten down stocks like Banks & IT leads the rally

Nifty swings in a Range of 139 points, Sensex swings in a range of 506 points

Nifty up 29 points to end at 3950 , Sensex up 195 points to end at 13055

Cnx Mid Cap 100 up 0.79%, Bse Small Cap up 0.57%, Nifty Junior up 1%

Bse IT up 3.7%, Satyam up 7%, Hcl Tech up 5.8% , Polaris up 5.1%, Infosys up 3.6%

Bse Bankex up 3.2%,  Hdfc Bank up 5.3%, Bank Of baroda up 4.8%, Indian bank up 4.1%, Pnb up 4%, Icici Bank 2.8%

Bse Realty dn 2.3%, Ib Real Estate dn 4.7%, Dlf dn 2%, Unitech dn 1.2%

Bse Oil & Gas dn 1.1%, Rpl dn 2.2%, Reliance Ind dn 2.1%, Essar Oil dn 1.4%

Index Gainers: Tata Power up 4.6%, Zee Ent up 4%, Power Grid up 3.3%

Index Losers: Sail dn 3.3%, Idea dn 1.6%

Non Index Gainers: Gammon Infra up 16.9%, Videocon up 13.8%, HT media up 6.8%, Mercator Line up 6.5%, Exide up 6.5%

Non Index Losers : Bajaj Finserve dn 5.9%, Jsw Steel dn 5.5%, Motilal Oswald dn 4.7%, Max India dn 4.4%,

NSE Adv- Decline Ratio at 1:1

F&O turnover at Rs 47733.85 crore vs Rs 56549.63 crore

Total Market Turnover at Rs 62868.47 crore vs Rs 76501.96 crore

F&O Snapshot:

Fresh long build up in Nifty Fut after yesterday’s short covering

Nifty fut ends at a premium of 22 points

Real Estate stock sees fresh short build up after a short bounce back

IT & Banking stock sees fresh long build up after short covering in yesterday’s trade

HCC sees aggressive short build up (build up of nearly 17%)

Options Activity:

Nifty 3800 put adds 8 lakh shares

Nifty 3650 put adds 6.8 lakh shares

Nifty 4000 call adds 4 lakh shares

Nifty 4200 call adds 3.7 lakh shares

Stock Options:

Infy 1440 call adds 46 thousand shares

Satyam 320 call adds 1.1 lakh shares

Fresh Long Build up:

Banks : Hdfc Bank, Indian Bank , Bank of Baroda, Idbi Bank , Icici Bank , SBI

IT : Satyam Comp , Infosys

Misc : Hdfc , Acc , ITC

Fresh Short:

Real Estate: DLF, Unitech, IB Real Estate

Misc : HCC, Sail , RPL,

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